THE PAPPINIVATTAM SERVICE CO OP SOCIETY LTD vs. THE COMMISSIONER OF INCOME TAX,

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WP(C)/20016/2019HC KeralaKLHC01051224201922 July 2019Bench: HONOURABLE MR.JUSTICE N.NAGARESH8 pages
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What did the High Court hold?

The High Court disposed of the writ petitions by directing the 1st respondent, the Commissioner of Income Tax (Appeals), to consider and pass appropriate orders on the appeals filed by the petitioner (Ext.P2) as expeditiously as possible. The Court further directed that no coercive steps shall be resorted to against the petitioner Society until the appeals are disposed of. This decision was based on the petitioner's reliance on previous High Court orders in similar matters, which the Court found persuasive. The Court did not decide the merits of the income tax assessments or the appeals themselves, but rather focused on the procedural aspect of ensuring timely disposal and preventing immediate coercive recovery.

What were the facts?

The petitioner, The Pappinivattam Service Co-operative Society Ltd., filed three writ petitions challenging income tax assessment orders for the assessment years 2012-13, 2013-14, and 2015-16. The Income Tax Officer issued notices under Section 221(1) of the Income Tax Act, 1961, for recovery of the assessed amounts pending appeals filed by the Society. The petitioner relied on previous High Court orders in identical cases, specifically W.P.(C) No.13364/2019 and W.A. No.1529/2019, which directed appellate authorities to consider appeals expeditiously and refrain from coercive steps. The petitioner sought similar relief in these petitions.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to consider and dispose of the statutory appeals filed by the petitioner expeditiously, and refrain from coercive recovery steps pending the disposal of such appeals, in light of previous High Court judgments in similar matters. Assessee's Contention: The petitioner argued that in identical cases, the High Court had directed the appellate authority to consider the appeals first and not to take coercive steps until the appeals were finalized. They cited W.P.(C) No.13364/2019 and a Division Bench judgment in W.A. No.1529/2019, which referred to a Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. Revenue's Contention: The judgment records that the learned Standing Counsel for the Department of Income Tax was heard, but does not detail their specific arguments.

Which sections of the Income-tax Act were involved?

Section 221(1)

AI-generated summary — verify with the full judgment below

Heard together (3 matters)

WP(C).No.20015 of 2019
WP(C).20016/2019
WP(C).20017/2019

Read from the judgment's own cause title. This page is filed under one of them.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH MONDAY, THE 22ND DAY OF JULY 2019 / 31ST ASHADHA, 1941 WP(C).No.20015 of 2019 PETITIONER: THE PAPPINIVATTAM SERVICE CO-OPERATIVE SOCIETY LTD. NO. R.309, P.O. MATHILAKAM, KODUNGALLUR, THRISSUR DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX(APPEALS), AYAKAR BHAVAN, SHAKTAN NAGAR, THRISSUR, PIN - 680 001. 2 THE INCOME TAX OFFICER, WARD 2 (4), SHAKTAN NAGAR, THRISSUR, PIN - 680 001. ADV. SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.07.2019, ALONG WITH WP(C).20016/2019 AND WP(C).20017/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) Nos.20015, 20016 & 20017 of 2019 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH MONDAY, THE 22ND DAY OF JULY 2019 / 31ST ASHADHA, 1941 WP(C).No.20016 of 2019 PETITIONER: THE PAPPINIVATTAM SERVICE CO OP SOCIETY LTD NO.R309, P.O. MATHILAKAM , KODUNGALLUR, THRISSUR DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, SHAKTAN NAGAR, THRISSUR DISTRICT, PIN - 680 001. 2 THE INCOME TAX OFFICER, WARD 2(4), SHAKTAN NAGAR, THRISSUR, PIN - 680 001. ADV. SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.07.2019, ALONG WITH WP(C).20017/2019 AND WP(C).20015/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) Nos.20015, 20016 & 20017 of 2019 3 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH MONDAY, THE 22ND DAY OF JULY 2019 / 31ST ASHADHA, 1941 WP(C).No.20017 of 2019 PETITIONER: THE PAPPINIVATTAM SERVICE CO-OPERATIVE SOCIETY LTD. NO.R.309, P.O. MATHILAKAM, KODUNGALLUR, THRISSUR DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX(APPEALS), AYAKAR BHAVAN, SHAKTAN NAGAR, THRISSUR, PIN - 680 001. 2 THE INCOME TAX OFFICER, WARD 2(4), SHAKTAN NAGAR, THRISSUR, PIN - 680 001. ADV. SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.07.2019, ALONG WITH WP(C).20016/2019, WP(C).20015/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) Nos.20015, 20016 & 20017 of 2019 4 J U D G M E N T ~ ~ ~ ~ ~ ~ ~ ~ ~ [W.P. (C) .20015/2019, 20016/2019 & 20017/2019] These writ petitions have been filed by the petitioner which is a Co-operative Society registered under the Kerala Co-operative Societies Act. Income tax assessment orders have been passed in respect of the Society for the years 2012-13, 2013-14 and 2015-16 as per Ext.P1 in all the writ petitions. Aggrieved by the assessment orders, the petitioner - Society filed Ext.P2 appeal against those assessment orders. Pending these appeals, the Income Tax Officer has issued Ext.P3 notices under Section 221(1) of the Income Tax Act, 1961 seeking recovery of the amount of assessment. 2. The learned counsel for the petitioner points out that in an identical case, i.e., W.P. (C) No.13364/2019, this Court has passed orders directing the appellate authority to consider the appeals preferred by the Society first and not to take any coercive steps till the finalisation of the appeal. In

WP(C) Nos.20015, 20016 & 20017 of 2019 5 judgment in W.A. No.1529/2019, an identical case, a Division Bench of this Court directed the Commissioner of Income Tax (Appeals) to consider and dispose of statutory appeals filed by the appellant therein at the earliest taking note of the Full Bench decision in The Mavilayi Service Co-operative bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. 3. Heard learned counsel for the petitioner and learned Standing Counsel for the Department of Income Tax. 4. After perusing the pleadings, I feel that these writ petitions also can be disposed of in similar manner. Accordingly, these writ petitions are disposed of directing the 1st respondent - Appellate Authority to consider and pass appropriate orders on Ext.P2 appeals, as expeditiously as possible and it is further directed that further steps of coercive nature shall not be resorted to against the petitioner - Society till the appeals are disposed of. Sd/- N. NAGARESH, JUDGE aks/22.07.2019

WP(C) Nos.20015, 20016 & 20017 of 2019 6 APPENDIX OF WP(C) 20015/2019 PETITIONER'S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 02.03.2016 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2013-14. EXHIBIT P2 COPY OF THE APPEAL DATED 28.03.2016 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2013-14. EXHIBIT P3 COPY OF THE ORDER PROCEEDINGS DATED 12.07.2019 ISSUED BY THE 2ND RESPONDENT.

WP(C) Nos.20015, 20016 & 20017 of 2019 7 APPENDIX OF WP(C) 20016/2019 PETITIONER'S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 22.12.2016 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2012-13. EXHIBIT P2 COPY OF THE APPEAL DATED 30.01.2017 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2012-13. EXHIBIT P3 COPY OF THE ORDER PROCEEDINGS DATED 12.07.2019 ISSUED BY THE 2ND RESPONDENT.

WP(C) Nos.20015, 20016 & 20017 of 2019 8 APPENDIX OF WP(C) 20017/2019 PETITIONER'S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 16.11.2017 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2015-16. EXHIBIT P2 COPY OF THE APPEAL DATED 12.12.2017 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2015-16. EXHIBIT P3 COPY OF THE ORDER PROCEEDING DATED 12.07.2019 ISSUED BY THE 2ND RESPONDENT.

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